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Australia, Just When Things Are Bad Enough Up Go Ir's


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Aus property market was already looking a bit dodgy when their rates were 5.5% then due to uncontrollable inflation they had to hike rates to 6.0% making matters far worse. And now guess what, inflation is still running wild and its a 100% certainty that rates will rise again in Nov.

http://news.bbc.co.uk/1/hi/business/6082928.stm

"Forget discussion about a November interest rate hike - it's done and dusted, home and hosed, cut and dried," said Stephen Koukoulas, chief strategist at TD Securities.

Now this is what I predict will happen here, BoE will go to 5.25% causing a property downturn, then just when everyone thinks rates have peaked inflation will pop up again and higher we go.

Australia a glimpse into the future. ;)

Edited by I Told You So
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Its different this time, there is job security, and people have much more money.

Just going to get a glass of water from choking!! with laughter :D:D:D

Funny thing is that when I mentioned UK interest rates hitting over 8% a couple of years ago they sent the doctor round to my house.

Joe Public is a fool, and I love him, if he were not I would not be in the position of profiting from his stupidity.

Bring it on, 8.5% base rate Feb 2008, I love it when a plan comes together.

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I agree that the neutral level for interest rates is about 7-8%. But since we have been so low in interest rates for such a long time, the level will probably shoot well past 8% for a while then come back down to meet its long term average. That's why I think that interest rates of 10-15% are totally plausible withing the next few years. How that must hurt on a IO mortgage at a high multiple of salary

L

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Its different this time, there is job security, and people have much more money.

Just going to get a glass of water from choking!! with laughter :D:D:D

Funny thing is that when I mentioned UK interest rates hitting over 8% a couple of years ago they sent the doctor round to my house.

Joe Public is a fool, and I love him, if he were not I would not be in the position of profiting from his stupidity.

Bring it on, 8.5% base rate Feb 2008, I love it when a plan comes together.

Can we not have 8.5% a bit sooner! :huh:

- I am bored of waiting for this to all start to unravel, it would be handy if things can start to go t*ts up just as Tony is passing things over the to the next poor unfortunate sod (Gordon?) to get the blame.

At what point to you think interest rates need to be before the general masses start to worry?

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Can we not have 8.5% a bit sooner! :huh:

- I am bored of waiting for this to all start to unravel, it would be handy if things can start to go t*ts up just as Tony is passing things over the to the next poor unfortunate sod (Gordon?) to get the blame.

At what point to you think interest rates need to be before the general masses start to worry?

Your point about Tony is pertinent. Tony is a wily fox. And a nasty little scumbag. He'll leave Gordon / whoever a poison chalice. He'll boobytrap the country to go off in the gay jock's fat smug face.

Come on Tone! Don't let us down now! F++k up the country like you know you want to! (even more than you've done already you criminal jumped-up guttersnipe - you and your chippy Northern slime of a party)

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Its different this time, there is job security, and people have much more money.

Just going to get a glass of water from choking!! with laughter :D:D:D

Funny thing is that when I mentioned UK interest rates hitting over 8% a couple of years ago they sent the doctor round to my house.

Joe Public is a fool, and I love him, if he were not I would not be in the position of profiting from his stupidity.

Bring it on, 8.5% base rate Feb 2008, I love it when a plan comes together.

8.5% would seriously be armageddon.

6.5% would be bad enough

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Aus property market was already looking a bit dodgy when their rates were 5.5% then due to uncontrollable inflation they had to hike rates to 6.0% making matters far worse. And now guess what, inflation is still running wild and its a 100% certainty that rates will rise again in Nov.

http://news.bbc.co.uk/1/hi/business/6082928.stm

"Forget discussion about a November interest rate hike - it's done and dusted, home and hosed, cut and dried," said Stephen Koukoulas, chief strategist at TD Securities.

Now this is what I predict will happen here, BoE will go to 5.25% causing a property downturn, then just when everyone thinks rates have peaked inflation will pop up again and higher we go.

Australia a glimpse into the future. ;)

"Now this is what I predict will happen here, BoE will go to 5.25% causing a property downturn, then just when everyone thinks rates have peaked inflation will pop up again and higher we go."

5.5% by the middle of next year, then higher.

Edited by CrashDive
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Can we not have 8.5% a bit sooner! :huh:

- I am bored of waiting for this to all start to unravel, it would be handy if things can start to go t*ts up just as Tony is passing things over the to the next poor unfortunate sod (Gordon?) to get the blame.

At what point to you think interest rates need to be before the general masses start to worry?

You are aware that crashing the UK housing market is not within the remit of the BoE MPC <_<

The aim is to control inflation; the expectation seems to be IRs to peak at 5.25pc in the current cycle, and back down from there.

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the expectation seems to be IRs to peak at 5.25pc in the current cycle, and back down from there.

The 'expectation' was that rates had peaked last year Europa, they didnt.

The 'expectation' was that GDP will be at 2.9 as you tell us, it won't be.

The 'expectation' was that inflation was under control, it is not.

blah blah blah

Your trust in 'expectation' is touching to say the least Europa, bless... :D

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Rather anecdotal, but anyway. On a training course this week and overheard (ok, eavesdropped then) on two guys in their late 40's talking about how ridiculous house prices are at the moment. They spoke with increduality at how the banks are lending people 5 x salary and 40 year mortgages. These two were home owners who, to all intense and purposes, should have a vested interest in rising property prices. They then went on to say that the government will do anything to avoid a crash until Gordon Brownose is in. There you go, maybe sentiment is changing - s l o w l y.

i hear that all over the place.

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Really? I usually hear people like that blindly spit out how house prices never go down, property is their pension, etc. The only place I hear it usually are places like this. ;)

I agree CrashTest; I am definitely beginning to hear people out in the real world express sentiments which I'd until recently only heard on here.
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